kovai medical center hospital reported a net profit after tax (PAT) of ₹24,446.00 lakhs for the financial year ended March 31, 2026, marking a 17% increase from ₹20,894.62 lakhs in the previous year. The growth was driven by a 15.65% rise in operating income to ₹1,58,563.68 lakhs, reflecting strong occupancy rates and higher average revenue per occupied bed. Earnings before interest, tax, depreciation, and amortization (EBITDA) climbed to ₹46,710.23 lakhs from ₹40,781.69 lakhs, maintaining a robust margin of 29%. The Board of Directors recommended a final dividend of ₹15 per equity share, subject to shareholder approval at the upcoming Annual General Meeting (AGM).

The AGM is scheduled for August 26, 2026, to be held via video conference or other audio-visual means. Shareholders will vote on the adoption of financial statements, the declaration of dividends, and the reappointment of Dr. M.C. Thirumoorthi as a director liable to retire by rotation. Additionally, the meeting will address the reappointment of M/s RKMS & Associates as Cost Auditor for FY2026-27 with a remuneration of ₹6,50,000 plus GST. Remote e-voting will be available from August 23 to August 25, 2026, with the record date set for August 19, 2026.

Financial Performance

Revenue from operations expanded significantly across both healthcare and education segments. Inpatient revenues grew by 15.02% to ₹1,05,824.86 lakhs, while outpatient revenues increased by 14.94% to ₹41,051.23 lakhs. The education segment contributed ₹11,539.07 lakhs, up 24.68% from the previous year, following the launch of postgraduate programs. Total expenses rose to ₹1,28,819.27 lakhs from ₹1,11,566.36 lakhs, primarily due to higher employee benefits and consultant charges, which scaled in line with revenue growth.

Operational Highlights

The company expanded its infrastructure with a ₹120 crore investment in the new Institute of Neuro Sciences & OPD Block, inaugurated in January 2026. This facility includes Tamil Nadu’s first AI-driven Neuro Radiology Center. Clinical milestones included performing 1,000 robotic-assisted knee replacements and recording 75 ECMO runs in 2025, the highest in the state. The Board also approved the construction of a 300-bed Paediatric Hospital, with work expected to commence in the second quarter of 2026.

What the Numbers Show

A key analytical observation is the efficiency gain in cost management despite aggressive capital expenditure. While depreciation and amortization expenses increased by ₹1,180.74 lakhs to ₹10,939.40 lakhs due to additions of ₹2,937.30 crore in capital assets, finance costs decreased slightly to ₹3,201.69 lakhs. This indicates that internal cash flows are sufficiently strong to service debt without relying on additional external borrowing, reinforcing the company’s conservative leverage profile and stable credit rating of CRISIL AA-/Stable.

Kovai Medical Center and Hospital Limited submitted its Business Responsibility and Sustainability Report (BRSR) for the financial year ended March 31, 2026, to the Bombay Stock Exchange on July 27, 2026. The filing, made pursuant to Regulation 34(2)(f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, outlines the company’s environmental, social, and governance performance. Healthcare facilities generated 92.72% of the entity’s turnover, with medical education facilities contributing the remaining 7.28%. The report provides a comprehensive view of the hospital’s operational footprint, workforce composition, and sustainability initiatives across its locations in Coimbatore, Erode, and Kovilpalayam.

The company’s paid-up share capital stands at ₹ 10,94,22,620. For the reporting period, CSR applicability was confirmed under Section 135 of the Companies Act, 2013, with a disclosed turnover of ₹ 1,58,563.68 lakh and net worth of ₹ 1,31,926.52 lakh. The Board of Directors assesses business responsibility performance annually, though no specific committee is dedicated solely to sustainability decision-making. Policies covering all nine National Guidelines on Responsible Business Conduct (NGRBC) principles have been approved by the Board and extended to value chain partners.

Workforce Composition and Welfare

As of March 31, 2026, the entity employed 5,527 permanent employees and 1,358 permanent workers. Women constitute a significant majority of the permanent employee base, accounting for 4,443 individuals or 80.39% of the total. Among permanent workers, males comprised 51.47% (699 individuals), while females accounted for 48.53% (659 individuals). The turnover rate for permanent employees in FY2025-26 was 3.39%, up from 2.21% in the previous year.

The company reported spending 0.28% of total revenue on employee and worker well-being measures in FY2025-26, compared to 0.27% in FY2024-25. All permanent employees and workers received training on skill upgradation and health and safety measures, achieving 100% coverage. Additionally, 100% of eligible staff underwent performance and career development reviews.

Environmental Metrics and Resource Usage

Total energy consumption rose to 73,599.97 units in FY2025-26 from 70,040.86 units in the prior year. Renewable sources accounted for 71,756.37 units, while non-renewable sources contributed 1,843.60 units. Water withdrawal increased significantly to 676,586 kiloliters from 597,522 kiloliters, primarily driven by third-party water usage from the TWAD Board. The company implemented a Zero Liquid Discharge policy, reusing treated wastewater for landscaping, HVAC applications, and flushing.

Greenhouse gas emissions showed a decline in Scope 1 emissions, which fell to 30.40 metric tonnes of CO2 equivalent from 39.30 metric tonnes. Scope 2 emissions decreased to 52.60 metric tonnes from 58.62 metric tonnes. Total waste generated increased to 864.80 metric tonnes, largely due to biomedical waste rising to 748 metric tonnes from 674.2 metric tonnes.

Governance and Stakeholder Engagement

The company reported no complaints regarding sexual harassment, discrimination, child labor, or forced labor. Two shareholder complaints were filed during the year, both of which were resolved with none pending at year-end. A penalty of ₹ 25,000 was paid by the Managing Director to the Registrar of Companies, Coimbatore, for a violation under Section 301(1) of the Companies Act, 1956, relating to the period 2013-14. No appeals were preferred against this action.

Related party transactions constituted 9,769.70% of purchases and 28.26% of sales in FY2025-26. The company maintains an anti-corruption policy aligned with its Code of Conduct and Ethics. No disciplinary actions for bribery or corruption were taken against directors, key managerial personnel, employees, or workers. The entity also confirmed accessibility of its premises for differently-abled employees and visitors in compliance with the Rights of Persons with Disabilities Act, 2016.